Meals on Wings Inc

Meals on Wings Inc.,which supplies prepared meals for corporate aircraft,needs to purchase new broilers.The new broilers would replace broilers purchased 10 years ago for $105,000,which are being depreciated on a straight-line basis to a zero salvage value (15-year depreciable life) .The old broilers can be sold today for $63,000.The new broilers will cost $202,000,installed (not counting funds already spent) ,and will be depreciated using straight-line depreciation over their 5-year life.They will be sold at their book value at the end of the 5th year.The firm expects to increase its revenues by $27,000 per year if the new broilers are purchased,but cash expenses will also increase by $3,000 per year.Annual interest expense will be $2,000,and net working capital will increase by $5,000.The new broilers will occupy space currently leased to another firm for $530 per month,and $5,000 has already been spent preparing the building for new broilers.The firm's tax rate is 40%.What are the terminal year cash flows? Round your answers to the nearest dollar.

A) $22,744
B) $23,944
C) $27,442
D) $28,944
E) $32,442